Ethereum Is Slipping to $4,200, What’s Causing The Pullback?
Ethereum’s (ETH) price has dropped to around $4,200, reflecting a nearly 5% decrease in the last 24 hours.
Quick overview
- Ethereum's price has dropped by 5% in the last 24 hours, falling to around $4,200.
- The decline follows a significant rally last week, with ETH now about 10% down from its peak of $4,759.
- A surge in liquidations, totaling over $870 million, has contributed to the downturn, with Ethereum accounting for approximately $210.6 million.
- Despite the recent volatility, a whale's purchase of 1860 ETH suggests ongoing long-term investment interest in Ethereum.
After last week’s price surge, Ethereum’s (ETH) price has significantly dropped by 5% over the past 24 hours. Let’s dig deep.
Ethereum’s (ETH) price has dropped to around $4,200, reflecting a nearly 5% decrease in the last 24 hours. This decline began over the weekend, leaving ETH about 10% down from its recent peak of $4,759. The pullback comes as a sharp contrast to Ethereum’s strong rally last week, which pushed monthly gains past 60%. The question now is, what factors are fueling this sudden reversal?
A surge in liquidations has contributed to Ethereum’s recent downturn. Over the weekend, billions of dollars in leveraged long positions were lost when the token fell below important support levels, which led to a lot of forced selling.
According to Coinglass, crypto liquidations have reached more than $870 million, with Ethereum accounting for around $210.6 million of that. This number is almost twice as high as the liquidations seen in Bitcoin, which shows how much leverage was used to boost Ethereum’s price. The quick unwinding of the cascade sped up the drop, making losses worse for everyone in the market.
Ethereum ETFs pulling back is also adding to the pressure. The nine U.S.-listed ETH funds had their best week ever, but they concluded their most recent session in the red.
Meanwhile, a whale moved up a lot by buying 79.34 BTC and 1860 ETH, which are worth about $17.08 million. Ai Auntie, an on-chain expert, thinks the whale may be using bottom-fishing methods because the transaction happened as prices were going down. The assets were sent to one address, which means that they were gathered deliberately instead of being traded normally. This action has gotten the attention of crypto watchers since big purchases like this are typically considered a sign that people believe in the long-term value of Bitcoin and Ethereum.
At this point, Ethereum (ETH) is still in its bullish period. While the timing of whales accumulating more assets, it also suggest that more investors are adopting in long-term investment amid the ongoing volatility in the crypto market.
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